Two Systems Journal
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Thread: Two Systems Journal

  1. #1
    I've got two systems in my hands-both of them seem to work.

    I have been trading the very first, lets call it the Quarters Trading System (name changed into Three Fours), with great results. Trading it reside for a penny a point, occasionally two pennies, and its been making me great pips. But it requires a bit more time than I would enjoy, and I've got this other thing I want to commerce, more just during peak hours. I basically want to restrict my time spent on Currency Market so that I can spend more time in my other job activities, mainly construction sites.

    So, what I am going to perform in this journal is post the paper traded results of this Quarters system each day, and show the live results from another system, which I will trade a few hours a couple of times a day.

    Lets call another system Micro-Happs, because thats basically what it is. Its an intra-day trading system for the Eur/USD, which uses the exact same 60/40% mathematical relationship of my bigger Happs charts, but its miniaturized for grabbing 20 to 30 pip intraday moves.

    Contrary to the Happs charts, this isn't an indior-this chart was created by hand.

    Ultimately my aim in this journal is simply to confirm that these are really profitable systems, and then afterwards I can transfer one or both of them up into the trading systems thread. So each day trade results will be posted-paper results for your Quarters system, and live results from the Micro-Happs system.

    However, lets get into more formal rules and explanations:
    ---------------------------------------------------------------------

    Three Fours System:

    This is sort of like Sixths trading, except for intraday. Its assumption is that rejections off the previous day's low or high tend to produce deep moves back into the main trading place, and it tries to capitalize on that tendency.

    I divide my chart up into quarters. The 0% line is the low of the previous days trading. The 100% line is the high of the previous day's trading. Between those lines you have the 25%, 50%, and 75%.
    Additionally, below the 0% line you have the -25%, -50%, -75%, and damaging 100%. Above the postive 100% line you have the 125%, 150%, 175%, and 200%.

    This produces a total of 12 boxes in your chart. I create these boxes simply by using altered fib settings.

    When price hits the 0 percent you put a pending buy at the 25% line.
    When price hits the 100 percent you put a pending market in the 75% line.

    If price hits the 0 percent and continues down into the -25% without first going up to the 25% line to trigger your buy, then the pending buy is simply moved down into the 0% line. And so on to -50%, -75%, and -100%. At -125% no -100% pending is put. A -75% pending, and a 175% pending are
    the limits for setting pending trades.

    Opposite for the favorable amounts. Ie if it hits 125% without first tripping your market at 75%, simply move the pending sell around 100%. And so up to the 200% level.

    Those are the entry principles. SL can be 1.5 boxes. TP can be 1/2 taken at a single box, and other half place to BE 2 at there. If and When 2nd half gets 80 points into profit, trail it with a 30 stage stop. For pairs with little ATR's, this 80 point number can be lessened. Still working on this.

    Every stage I make with each half of this entrance will be counted because 1/2 pip. We get real numbers at the end of the day.

    Trading Times for Three Fours:

    The system begins at 8PM EST.. This is the beginning of the Asian session also marks the beginning of the new trading day on the East Coast. Now you'll be able to place the Three Fours boxes in your charts according to the previous day's low and high data, and wait for the transactions to place up themselves.

    Concessions are shut at 3PM EST the next day, 19 hours afterwards. Not much happens from 3PM to 8PM. Over time you could find a rest even lead to best by departing transactions in past this stage. So is better to give it a break and shut up shop for some time each day.

    Cease taking new transactions after 1PM EST.. There's no point opening a commerce at 2PM which you are going to close at 3PM.

    Revisions for Three Fours:

    the sole revisions made so far have to do with the exit rules for the next half of this trade. I discovered that putting a tight trailing stop on the next half of this trade too soon was costing me a few pips on the big runners.

    So next half TP rules were changed to BE 2 at 1 box, and then route using a 30 point cease once its 80 points into profit. Otherwise shut it at the end of the afternoon, 3PM EST..

    Aside from that 3 pairs which revealed no profit were removed from trading: GJPY, UCAD, and EURAUD. Therefore the field is down to 10 from 13.
    To find stats on profitiability of individual pairs after the first 7 trading days check this post:

    https://www.nigeriaforextrading.com/...ervations.html

    --------------------------------------------------------------

    Micro-Happs System:

    This chart like I said has been done by hand, and that I worked out it mathematically. It uses the two stage, 60%/40% relationship because of its own structure, each stage having a mid century. Yellow lines are the mid of the big stage, light brown lines are the mod of this little stage. Red lines are put between the yellow and brown lines.

    Entry points are the Red lines. Sometimes you can enter on one of the yellow or brown traces, but for the most part, you only want to enter on the red lines.

    In addition to this the Red/Green TDI indior is used. Exact rules for entry are as follows:

    For a Long:

    1)Both wavy TDI lines are above the center line of this TDI indior, which I have highlighted with a light blue horizontal line.
    2)The green wavy line is above the red wavy line.
    3)Price penetrates a red line on the Micro-Happs chart from below.

    For a Brief:

    1)Both wavy TDI lines are below the center line of this TDI indior.
    2)The red wavy line is above the green wavy line.
    3)Price penetrates a red horizontal line on the Micro-Happs chart from above.

    TP: attempt to acquire at least to the next red line on the other side of this yellow or brown mid. If momentum is great then simply ride it.

    SL: use common sense, its a 20-40 point goal per trade, therefore....

    -----------------------------------------------------------------------
    Okay so I'll put up a few charts and yesterday's results for your Quarters system. Tomorrow I will start posting outcome for both.
    -----------------------------------------------------------------------

    Quarters System Results for 5/12/11

    EOD is 3PM EST-no trades beyond this stage til 8pm EST
    Spread factored in...

    Quarters being traded on these pairs:

    EU, EAud, EJ, GJ, GU, GC, GNZD, AU, ACad, AJ, NZUsd, NZJpy, UsdCad

    EU: triggered long, EOD close 5
    EA: triggered long, 1/2 taken at 1 box, half closed at BE 2, complete 13
    EJ: trigger long, 1/2 taken at 1 box, half closed EOD, complete 20
    GU: triggered long, shut EOD -30
    GC: Not triggered
    GJ: triggered long, shut EOD at BE
    GZ: triggered long EOD, ignore (not triggered)
    AU: triggered long, closed EOD 10
    AUDCAD: triggered long, 1/2 taken 1 box, 1/2 hit tracking stop, complete 36
    AJPY: triggered long, 1/2 taken 1 box, 1/2 stopped BE 2, complete 23
    NZUSD: triggered long, 1/2 taken 1box, 1/2 hit tracking stop, complete 54
    NZDJPY: triggered long, 1/2 take 1 box, 1/2 hit tracking stop, complete 17
    USD/CAD: triggered short, closed EOD 12
    __________________________________________________ ___________

    Grand total: 158 pips
    Avg: 11.2 pips per pair, 15.8 pips per pair traded
    9 winners, 1 collapse, two maybe not triggered, 1 parity

    -----------------------------------------------------------------------

    Ideas on these results:

    Win ratio does seem to be high up to now. Just one full stop loss would have dragged it down quite a lot though. The only observations I can make so much is that I am losing some pips with the observation stop. Wild swings stop 2nd out half before pushing greater. Taking half then setting rest to BE 2 with a 75 point target, or otherwise close at EOD may be a more profitable thing to do. See how future transactions proceed .

    -----------------------------------------------------------------------

    There is no true template to provide with all the Quarters system. Just change your fibs for the inputs I explained earlier, and place them on the previous days range, 0 at the lower stage, 100% at the high. Thats it, your set.

    I will provide one anyway-I'm simply not certain the fib configurations I comprise will carry over into the template if your fib settings are not the same. But just in case they do, then I will inlcude one so you can see how the fib configurations are altered. When they don't carry over, then you are going to have to change you are own fib settings and use the fibs into this chart yourself.

    The Quarters template example is for the AUD/CAD.

    ----------------------------------------------------------------------

    The Micro-Happs chart of course does have a template, which I figure I will provide...

    About the Micro-Happs template there are quite a few squares and vertical lines which I have set to reveal valid entry points. Blue square for long, red square for short, and yet one Kakhi coloured square to demone a long entrance which was no good. When You get the idea, simply go to the objects list in your chart and delete the Vertical lines and squares. Don't delete any horizontal lines. Those will be needed by you. Also Micro Happs is a 5 Min chart system, so put it on the 5 MIN EU chart.

    Probable Ideal Times for trading Micro Happs:

    Possibley Asian session. Not Frankfurt open. London Open, and USA open good. You basically need good energy to carry you through the traces, but not crazy trading such as Frankfurt can get. Sometimes Asian has it, sometimes not. USA/O and lon/O have it.

    The yellowish and brownish mids on the micro-happs chart are similar to quitting points when momentum is poor, and acellerators when momentum is good. So to trade Asian session, I reccomend you see first and make certain that there is enough action going on, or only go for very tiny scalps, ie red line to the mid, rather than red line to the upcoming red line.

    Please Remember these are not fully confirmed systems, only promising ones. I myself trade them for only a penny per point. I suggest if you would like to trade them to demo or to trade for no longer than 1 cent per point until these are more proven, and you get the hang of these.

    Ex charts, indi, and template posted under. Best Chart is Micro-Happs Example, bottom chart is Quarters system Example.

    --------------------------------------------------------------------------------------------------------------------------------


    https://www.nigeriaforextrading.com/...3779556100.mq4
    https://www.nigeriaforextrading.com/...4675204362.tpl
    https://www.nigeriaforextrading.com/...2144981304.tpl

  2. #2
    See 1st post for newest chart template.

  3. #3
    Running Complete for Quarters 312

  4. #4
    Eu: triggered long, 1st 1/2 closed 1 box, 2nd hit tracking stop, complete 75
    EJ: not triggered
    GU: triggered long, 1st 1/2 closed 1 box, 2nd closed BE 2, complete 16
    GC: not triggered
    GJ: not triggered
    GNZD: triggered brief, 1/2 near 1 box, 2nd trailing stop, complete 80
    AU: triggered lengthy, 1/2 near 1 box, 2nd near EOD, complete 45
    AUDCAD: triggered lengthy, 1/2 near 1 box, 2nd shut EOD: complete 39
    AJPY: not triggered
    NZUSD: triggered lengthy, 1/2 shot 1 box, 2nd closed EOD: complete 27
    NZJPY: triggered long, 1/2 shot 1 box, 2nd, closed EOD: complete 20
    EURAUD: triggered brief, closed EOD -13
    UCAD: triggered brief, closed EOD -26

    Daily complete: 263
    Running Total: 575

    Observations: new rule for closing 2nd half appears to be working out OK up to now. Noticed it might be more effective to track entries by 1/4 rather than putting them in stiff levels. IE, price hits 100% then proceeds up to 112% then down, rather than entering 75%, input at 87% (112-25=87). Not sure about it though. Would have worked now. Will wait to see some more future trades before deciding. Otherwise, very good day with loads of big winners, without a huge winners.

    -------------------------------

    Micro Happs, I took two quick trades in L/O for 39 and called it a day.

  5. #5
    Hi Steve,

    Outstanding stuff!

    I really likr the quarters procedure

    Can the quarters method be a fantastic candidate for automation?

    ie Mr Hopwood ?

  6. #6
    Quote Originally Posted by ;
    Hi Steve,

    Excellent stuff!

    I really likr the quarters procedure

    Would the quarters method not be a good candidate for automation?

    ie Mr Hopwood ?
    Hi Ian,

    I think it would, yes. I did indie it on one of Steve's threads, however I guess that he did not consent, or at least at first glance, because he decided to ignore the post.

    It can be that he simply wants to code systems that have an established history of success-not only ideas. Though I had traded it live for about a week before suggesting it.

    So I guess thats a part of the reason for this diary, to prove its tradeability within a longer time period. Its own hell to trade as it requires up 19 out of 24 hours in the day, although it works fantastic. An EA would be a Godsend for this reason.

    Anywho, constantly hope for the future. Til then I'll just keep doing what I am doing. Gives me a opportunity to refine a number of their entry and exit methods anyway. Thank you for posting-

  7. #7
    Used a fib tool to hammer the red lines into shape, at least inside a 2,000 pip radius or so. Upgraded in place 1.
    https://www.nigeriaforextrading.com/...2132177347.tpl

  8. #8
    Kind of complied yesterday-wild day. Assuming the system is allowed to open more than 1 trade on one pair per day (as if it was being conducted in an EA, the outcomes are follows):

    Eur/Aud: 1st round, triggered short, 1/2 shot 1 box, 2nd closed BE 2, complete 19
    2nd round: triggered short hit full cease -37
    3rd round: triggered short, 1/2 shot 1 box, 2nd closed EOD, 28
    complete for Eur/A is 12
    USD/CAD: triggered short, hit full quit -36
    2nd round: triggered short, 1/2 shot 1 box, 2nd closed EOD, 29
    complete for UCAD is -7
    EU: Not triggered
    EJ: triggered short, 1/2 shot 1 box, 2nd closed BE 2, complete 23
    GU: triggered short, 1/2 shot 1 box, 2nd hit tracking stop, 37
    GC: triggered short, 1/2 shot 1 box, 2nd closed EOD, 55
    GY: not triggered, exceeded all pendings
    GZ, triggered original box, 1/2 shot 1 box, 2nd 1/2 hit tracking stop: 65
    AU, triggered long, 1/2 shot 1 box, 2nd 1/2 closed EOD: 42
    AUCAD: triggered short, closed EOD -35
    AJPY: triggered short, 1/2 shot 1 box, 1/2 hit tracking stop: 35
    NZUSD: not triggered
    NZJPY: triggered short: 1/2 shot 1st box, 2nd closed BE 2, 6

    Daily Total: 233

    Running Total: 808

    -----------------------------------------------------------

    My thoughts on these trades: Yesterday was a crazy day for the markets with lots of swings and really put this system into the test. Clearly it came through quite well. Still waiting for the first slimming.

    Apart from that I'm seriously considering taking GJpy off the roster. Its lost a huge position in the past, and yesterday it went off the charts, although it did not do any harm. It may just be too volatile for the good of this system. GNZD on the flip side, which is a huge mover, has made a slew of pips up to now. That one remains, even with its 11 pip spread. Give GY a few more chances to make a few pips.

    -----------------------------------------------------------------

    Micro-Happs, did not exchange it yesterday, EU was too mad for me.

  9. #9
    Hi Steve!

    I really like these basic notions of trading:--RRB-

    Today I saw that the price moving between your Quarter lines. . .it appears to be a great egy. . .but really difficult to follow manually. . .especially because some transactions need to be placed during night time...

  10. #10
    Quote Originally Posted by ;
    Hi Steve!

    I really enjoy these basic ideas of trading:--RRB-

    Now I saw that the price shing between your Quarter lines. . .it seems to be a fantastic egy. . .but really difficult to follow manually. . .especially since some transactions need to be put during night ...
    Hi Chris,

    Thank you for posting. I believe you're comment hit the nail on the head. Thats why I stopped trading it live after weekly. Staying up those sorts of hours will require it out of you. It needs an EA.

    No matter how the idea of trading it on 13 pairs-its simply to give overall protection to make it even more likely that every day will be a positive day. But it does not need to be exchanged this way. You can take the top 5 most profitable pairs, then only trade them when the opportunity arises. I have been thinking about doing this.

    Anyway seems like the best that can be done til some coding happens.

    Cheers-

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